GLOSSARY

Asset
Anything which you own e.g. your home, car, money, investments, business etc

Beneficiary
A person or organisation who receives something in your Will.

Bequest
A gift of money or items made in a Will (not land or property)

Codicil
A document making changes or additions to your Will

Capacity
Being of sound mind and over 18

Deed of Variation
The process of changing a Will to make it tax efficient in the 2 years after death.

Discretionary Trust
A Trust in which none of the beneficiaries has an interest in possession and the distribution of trust property or income from it is at the discretion of the trustees.

Estate
The value of all your assets at the time of your death.

Executor
Someone appointed to carry out the instructions in your Will.

Inheritance Tax
(IHT)Tax deducted from your estate, depending on its net value, hereby reducing inheritance tax liability.

Interest in possession
The right to receive income from trust property.

Intestate
Dying without leaving a Will.

Joint Tenancy
When more than one person co-owns a property, their interest passes automatically to the survivor on death and so can't be left to anyone in their will.

Legacy
Money given to a person or organisation in your Will

Nil Rate Band
The amount a deceased person can pass on without IHT being payable on it

Probate
Is the "winding up" of someone's estate after they die.

Potentially Exempt Transfer (PET)
A gift between individuals or a gift between an individual and a trust. No IHT is payable provided the giver survives for seven years.

Settlor
The person who sets up a trust and puts money or assets into it

Tenants in Common
Each joint owner owns their own share of a property and can dispose of it freely in their Will and during their lifetime.

Trust
A legal arrangement whereby property is held by Trustees on behalf of one or more beneficiaries.

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